Blockchain in Government: An Unlikely Match?

At the surface, blockchain in government operations doesn’t appear to be a likely match. There’s a common perception that technology and governments are competing against one another. This is likely due to the fact that cryptocurrencies, for example, reduce or even eliminate the need for centralized institutions.

Even though competition between blockchain projects and government institutions could be an issue to watch out for, looking only at this possibility doesn’t show the bigger picture. In reality, we’re beginning to see many nations trend towards greater utilization of blockchain technology for many reasons.

National Cryptocurrencies

Beginning in 2017, a number of nations began to consider implementing their own national cryptocurrencies. The Venezuelan Petro, Russian Cryptoruble, and Estonian Estcoin are all examples of governments utilizing blockchain to create cryptocurrencies. But as of June 2018, we haven’t seen much progress from these digital currencies.

For example, the Venezuelan Petro was ruled unconstitutional by the Venezuelan National Assembly in March 2018. And many governments throughout the world have criticized this project. While Estcoin appeared to be a bit more promising, Estonia has since called off (or at least scaled back) plans of launching its national cryptocurrency after criticism from the European Central Bank.

Even though the implementation of national cryptocurrencies seen thus far hasn’t seemed to work, many people view the creation of these projects as inevitable in the long-term, which will bring more efficiency and transparency to national economies.

Better Voting Systems

Election fraud continues to be a major issue for governments around the world. Voting machine hacks and intentional voting miscounts from groups in power have led to rampant distrust amongst voters. Blockchain-based voting systems have the potential to solve these issues and gain widespread adoption.